“No one wants to buy the cheapest option, but a buyer needs to rationalize its decision to pay more. From buying TVs and vehicles to professional services such as construction, buyers want the best bang for their buck.”
Perryn Olson, Marketing Director at My IT, LLC, emphasized this idea in a recent report advising construction firms on how to elevate their brand and move towards higher value projects. Olson is also account director at branding and marketing firm Hinge.
“To win a best value project, the winner must explicitly explain its value. Construction buyers pay more for expertise because it is the safer bet,” Olson further explained.
Through “positioning,” the branding expert noted that companies must be able to clearly articulate its company goals and identify its target market. Such an exercise makes it clear to the organization which projects it will not undertake, and the kind of clients it will not work for.
By sifting through its clientele, he added, the company establishes the values it aims to associate with its brand, thereby creating the image that will help it move away from commoditizing its services and move towards engaging in best value and specialized projects.
“Companies that are well-positioned pass on more work than they pursue because not all work fits their company and value. Passing on opportunities where low price is the only way to win will increase your hit rate, which in turns lowers overhead expenses from chasing unattainable projects. This time savings also gives you more time to enhance your current clients’ experience and provide more value. This service and value will self-perpetuate itself in the form of referrals and repeat (negotiated) work,” the marketing executive concluded.